Lenders of all types have had to adjust how they analyze new loan requests and renewals during the ongoing pandemic. Should you even be making new loans? How should you adjust your underwriting methods to meet the needs of commercial borrowers? What are other credit unions doing?
Recorded from a live session on June 11, 2020 – Mike Smith of CUBG discusses these questions, plus:
– Which financial criteria to focus on today and going forward
– Analyzing financials based on current closures and revenue declines
– Are current appraisals correct? Approaching LTV for affected property types
– Loan limits – types, size, LTVs, and more
– Additional analytic techniques including rent roll and tenant strength analysis, reviewing commercial leases, adjustments to financial results, and stress testing
– Structuring and pricing loans
– Annual reviews and COVID-19 – how to handle delayed financial information, declining revenues, and the impact of PPP loans on our members
Length: 55 minutes
Educational materials are proprietary and are not to be shared outside the purchasing credit union.